An Employee Earned $128,500 Working for an Employer in the Current

question 26

Multiple Choice

An employee earned $128,500 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 maximum per year and the rate for FICA Medicare 1.45% of all earnings. The employer's total FICA payroll tax for this employee is:

• A) $9,210.25.
• B) $9,830.25.
• C) $8,950.50.
• D) $879.75.
• E) $0, since the FICA tax is only deducted from an employee's pay.

---

Definitions:

Price

The amount of money expected, required, or given in payment for something; it reflects the value at which a transaction can occur.

Dioxins

Highly toxic chemical compounds that are environmental pollutants and known for their ability to persist in the environment and accumulate in the food chain.

Parts Per Million

A unit of measurement used to denote the concentration of a substance in water or air, equal to 1 part of the substance in 1,000,000 parts of the solvent.

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data, showing how much one variable is affected by another.